Mechel is successfully restoring production volumes at its steel segment subsidiaries’ plants

Mechel OAO is successfully restoring production volumes at its steel segment subsidiaries’ plants. Thus, the blast furnace #4 at Chelyabinsk Metallurgical Plant OAO (CMP OAO) was commissioned in March 2009 after capital repair, Southern Urals Nickel Plant operates its full capacity, and one more ore heat-treating electric furnace is commissioned at Tikhvin Smelting Plant ZAO. In June, 10 2009 coke oven #4 started operations after capital repair at CMP. Its capacity is 440 thousand tonnes of coke per year.

In June, 18 2009 the official commissioning of the block of coke oven batteries No. 2 was held at Moscow Coke and Gas Plant OAO. The event was attended by the Minister of Industry and Science of Moscow Region Government Vladimir Kozyrev, the Head of Leninsky Municipal District (Moscow Region) Vasily Golubev, Mechel Management OOO CEO Andrey Deineko, Moskoks Managing Director Vladimir Tycskiy and other honorable guests.

The personnel of the plant’s three main workshops resume working based on a full time schedule as the capacity utilization was restored starting from June 15.

Block #2 consists of three batteries – #3, 4 and 4-bis. It includes 89 oven chambers with 23.4 cubic meter capacity each. After today’s restart, the plant’s average monthly capacity utilization level will become equal to the average rates of the first eight months of 2008 (pre-crisis level). The block will produce 50 thousand tonnes of coke monthly after reaching its production capacity. Total annual capacity of the plant is 1.3 million tonnes of coke of 6% humidity. The plant’s personnel is 1300 employees. After commissioning of the block #2 the plant’s capacity utilization will reach 100%.

In the course of hot conservation period maintenance and capital repair works were held. The works included gas exhaust and intake equipment checkout, repair of water pipeline for the coke extinguishing towers #1 and 2, inlet collector of primary gas refrigerators of collecting workshop repair and some other works.

“Mechel OAO is the only Russian company commissioning coke oven batteries after period of suspension and production volume drop. Currently many metallurgical and chemical-recovery companies significantly decreased coke production as we saw very low demand in the last few months. Production volumes recovery at Mechel group’s plants became possible mainly due to our sales units successful performance. Their efficient work allows us to increase deliveries to the third parties on the internal Russian market as well as export deliveries. For example, in June about 30% of Moskoks production will be shipped to foreign countries.

Increase in coke production allows us to additionally utilize coking coal mining capacity providing us with reliable consumption channel.

Steady work of mining plants is very important in the current economic situation and we would like to emphasize that the company fulfills its obligations in production and social programs as well,” Mechel OAO Senior Vice President Vladimir Polin commented.